Stimulus Check & CARES Act update

May 11, 2020

In the wake of the historic passing of the CARES Act, we at Financial Plans & Strategies are trying to stay up-to-date with the legislation and how it affects our clients. We have several new developments to share with you.


Update 1: The IRS has updated their guidance for Economic Impact Payments (stimulus checks) that were mistakenly sent to deceased persons. They state that someone who has died does not qualify for the Payment and that these checks should be returned to the IRS.1

While it is likely that the IRS will be unable to enforce this guidance, the stimulus checks were not intended to be paid to anyone who has died.2 Therefore, the government asks that anyone who received a check made payable to someone who is deceased to return the payment to the IRS.


This can be done in one of two ways:

  1. If you still have the paper check (uncashed): Void and mail the check to the IRS.
  2. If you received the payment via direct deposit or if you cashed the check: Submit a check or money order to the IRS in the amount of the payment received.


Note: If this situation applies to you, please read the full instructions on the IRS website for more details and to find the IRS address for the appropriate region:


Update 2: If you have not received your Economic Impact Payment (stimulus check) yet, you have until noon on May 13th to submit your direct deposit information to the IRS.3


Millions of Americans have not yet received their stimulus check. If you fall into this category, the deadline to submit your direct deposit information to the IRS is 12 pm on May 13, 2020. If you do not submit this information by the deadline, you might end up waiting until June or later to receive your stimulus check in the mail.


Here is the IRS website for updating your direct deposit information:


How quickly the stimulus check is sent is dependent on the individual’s tax situation:

  • Those who have a return on file – and had a refund due to them in 2018 or 2019 – received their checks the quickest because the IRS has their direct deposit information ready.
  • Those in other tax situations (including non-filers and those who owed taxes in recent filing years) are experiencing delays.
  • Some who receive Social Security (or several other related benefit income) are experiencing delays in receiving their checks because the IRS has to get the direct deposit information from the Social Security Administration or other department.


Update 3: In a key clarification, the IRS allows 2020 RMDs to be rolled back into traditional IRAs for any distribution taken after February 1st – the deadline for the rollover is July 15th.4


As a reminder, Required Minimum Distributions are waived for 2020. If you have already taken your RMD (or part of your RMD) in 2020, and you do not need the money for income, you have until July 15th to roll the distribution back into your IRA. However, any distributions taken in January 2020 are ineligible to be rolled back into your IRA under this rule, unless you qualify for the Coronavirus-Related Distribution Provision.


Unfortunately, if a beneficiary IRA account owner has already taken their 2020 RMD, they do not have the option to roll distributions back into their accounts.


If you have any questions about these updates, or have any other concerns, please call Financial Plans & Strategies at 317-882-7675. In the meantime, we wish you and your family all the best.